Elon Musk has reneged on an April promise not to sell anymore Tesla stock, offloading $5.37 billion in shares, assumedly to fund his $66 billion Twitter takeover.
This has led Wall Street’s leading tech analyst, Dan Ives from Wedbush, to slam what he sees as Musk’s abandonment of the free-falling EV company.
“The Twitter nightmare continues as Musk uses Tesla as his own ATM machine to keep funding the red ink at Twitter which gets worse by the day as more advertisers flee the platform with controversy increasing, driven by Musk,” Ives wrote in a note to investors.
“When does it end? This remains the worry on the Tesla story as Musk has managed to change the narrative of Tesla from the fundamental EV transformation story to a source of funds for funding the Twitter turnaround which we believe will go down as the most overpaid tech acquisition in the history of M&A and remains a train wreck situation.
Tesla has fallen more than 60 per cent this year alone. It was valued at A$2.09 trillion in November 2021, and is currently valued at A$742 billion.
Musk has sold more than 94 million shares of Tesla so far this year.
Musk also saw his personal fortune drop from A$506.7 billion (also in November 2021) to A$243 billion.
Considering Twitter is losing millions each day, it will take such effort for Musk to bring his personal fortunes back to the November peak.
